Steve Ballmer: Microsoft Is "Betting Our Company" On The Cloud

Microsoft Chief Executive Steve Ballmer says Microsoft is betting the company on cloud computing.

Speaking to several hundred students at the University of Washington, Ballmer spoke of the evolution of the Redmond-based company best known for its Windows and Office PC software, to a cloud computing company.

"This is the bet for the company," Ballmer said. "For the cloud, we're all in."

Microsoft began selling cloud software and services Windows Azure and SQL Azure in 21 countries at the start of February. About 70% of Microsoft employees are working on cloud-related projects right now, Ballmer said. "That figure will reach 90% within a year," he added.

Ballmer outlined several key benefits of cloud computing, emphasizing that it creates "opportunities and responsibilities."

"For years in the pre-cloud era I spent my time meeting with software developers who had a brilliant idea and said we have written an application and we have two customers right here in Dubuque. Can you help us find customers in Des Moines and Seattle?" Ballmer said. "You think about infrastructure that will now support a wide class of creators."

Ballmer also stressed the need for privacy and security as people move online. There was a "huge internal debate" at Microsoft when it launched the new Internet Explorer 8 version with an "in-private browsing" mode, he noted.

"I think we have a responsibility, all of us, not just to socially respect the user, but to build the technology that will protect the anonymity, the privacy, the security of what I say, who I say it to, where I go, what's important to me," Ballmer said.

"At Microsoft we're trying to take kind of an interesting view on this. We think as a big company we've got to lead on privacy. We've got to really do the best job we can to make sure that there's a vibrant and healthy competition amongst all of the companies that provide commercial infrastructure," he told his audience at the University of Washington.

"We kind of understand both sides of that ledger sheet, so to speak, because for the creator to have the opportunity to really build a strong business it will be important that, whether it's payment infrastructure, or stores, or catalogues, or billing, or advertising, that there be a number of strong and innovative commercial players in the marketplace. So, this is a dimension of the cloud, and it's a dimension of the cloud that needs all of our best work in my opinion."

The Microsoft chief also noted that the cloud can enhance social and personal interactions.

"It's ironic. I'm here talking about virtual interaction, socialization, and yet I wouldn't think it was right to not be here in the Allen Center itself to talk to you. And the truth of the matter is, I'll know we've succeeded with this aspect of the cloud the day we all agree that the virtual interaction through the cloud is as good as being here," he said. "And that's a combination, again, of a lot of innovations, hardware innovation, software innovation, some people think it's all about getting enough bandwidth. We can kind of prove to you there will never be enough bandwidth."

There better be enough software to figure out to really create a real-time virtual image of this room, Ballmer added. "This would be a particularly tortuous test, I think, of doing a good virtual meeting. But, it's part of the way that you really start getting down the path of thinking about social interaction and professional interaction."

The cloud is all about expression, interaction and collaboration, Ballmer emphasized. "And so really taking Microsoft Office to the cloud, letting it run in the cloud, letting it run from the cloud, helping it let people connect and communicate, and express themselves. That's one of the core kind of technical ambitions behind the next release of our Office product, which you'll see coming to market this June."

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio